SEP IRA
If I contribute to a SEP IRA, am I subject to the income limits for contributing to a deductible IRA?
i.e. Is a SEP IRA a “qualified plan” for purposes of the IRA Deduction Phase-Out?
If I contribute to a SEP IRA, am I subject to the income limits for contributing to a deductible IRA?
i.e. Is a SEP IRA a “qualified plan” for purposes of the IRA Deduction Phase-Out?
Permalink Submitted by Alan - IRA critic on Tue, 2019-10-22 16:23
Yes. If you make a SEP contribution you are considered an active participant in an employer plan and that will impose the MAGI limits on your TIRA deduction. Note that participation in a SEP is determined for the year IN WHICH the contribution is made, not necessarily FOR WHICH. Therefore, if you are self employed and the only contribution was made this year for 2018, you are a participant for 2019, but not for 2018 because the contribution was made in 2019.
Permalink Submitted by Robert Wright on Tue, 2019-10-22 16:28
Thank you very much.